Newflash: Corruption, major problem, not fuel subsidy – Saraki

Posted by admin Latest Politics, Oil Politics Sunday, October 16th, 2011

Former Kwara State Governor, Bukola Saraki, has urged the Federal Government to tackle the alleged corruption in the petroleum industry to win the confidence of Nigerians in its plan to withdraw fuel subsidy.

According to him, there is the need for public enlightenment to make the people appreciate the policy.

Saraki, who represents Kwara Central Senatorial District, said in Ilorin on Saturday that the Federal Government spent N600bn on fuel subsidy last year and might spend N1.5tn this year.

He said, “I think what we need to do is advocacy and letting people understand that it is in the interest of Nigerians. We need to clear and address the issue of corruption. Let people know that they are definitely going to benefit even if they are going to make this kind of sacrifice.

“Spending N1.5tn annually on fuel subsidy is not sustainable.

“Government must however be able to convince Nigerians that removing the subsidy is in their own interest. Government must also make all know that there are tangible benefits to be derived from the withdrawal of fuel subsidy. But this will take a lot of consultations.

“Last year, government spent about N600bn on fuel subsidy. This year it is likely we are going to spend N1.5tn. Are there more cars? Are we consuming more fuel than before? If we run a more efficient mechanism is it possible to keep it at N600bn. At N600bn, is it sustainable? Spending N1.5tn on fuel subsidy is suffocating government.”

Saraki urged government to be transparent in the utilisation of the proceeds of the subsidy withdrawal.

The former Chairman, Governors’ Forum, said with the setting up of a panel by the National Assembly to look into the alleged fraud in fuel subsidy, Nigerians would know those behind the economic woes of the country and possibly find a solution.

He said, “If we are producing through the refinery, the fuel will not cost as much and at that level you can subsidise. The countries they are comparing Nigeria with are refining their own petroleum products. People are rejecting the proposal as they have lost confidence in the process. They don’t want to know how we got to that mess.”

He also said the environmental challenges in the country should be addressed.

Saraki said, “We need to see how we can bring to the front burner salient environmental issues by discussing all ramifications and implications of environmental challenges and how they affect everywhere in the country. There is desertification in the North, gully erosion in the South-East, flooding in the South-West, gas flaring and oil spillage in the South-South. I believe some of the laws and policies passed in the past, concerning the environments, have not been fully enforced.”

Saraki who is also Chairman, Senate Committee on Environment and Ecology, assured the people that Nigeria would witness a legislation capable of transforming the socio-economic agenda of the nation.

He said the National Assembly would enact laws to improve the living standards of Nigerians, adding that the legislators were determined to work with the executive to develop the country.

Saraki said the merger of the Allied Congress Party of Nigeria with the ruling Peoples Democratic Party and the defection of some members of All Nigeria Peoples Party to the PDP did not come to him as a surprise.

He said, “I’m not surprised because right from time, I knew that PDP is well entrenched in the state. Given our achievements in the past eight years and the determination of Governor AbdulFatah Ahmed to hit the ground running, people now see the PDP as a party that will help the common man in the state. That is why most of the people in other parties are defecting to PDP. About 70 percent and 90 per cent of ANPP and ACPN members respectively are now back to where it was about nine months, before the crisis started. The PDP is stronger than what it was during the election. In Kwara, there is nobody that is relevant that would not want to associate with PDP.”